Reform Alert # 4 - SB 1040 Signed by Governor Snyder

MPSERS reform

 

September 4, 2012

Reform Alert # 4 - SB 1040 Signed by Governor Snyder

 

SB 1040 was signed today by Governor Snyder, amending the Michigan Public School Employees' Retirement System. The legislation gives all active members a choice regarding their future retirement:

  • Members who began public school employment before September 4, 2012, are given a voluntary election regarding their retiree healthcare.
  • Members who began employment before July 1, 2010, are given a retiree healthcare election and a voluntary election regarding their pension.
  • New Hires (members who first worked for a Michigan public school on or after September 4, 2012) are given a voluntary election regarding their pension.

Members can access resources and make their elections in miAccount starting September 4, 2012, continuing through 5:00 p.m., October 26, 2012. New hires will receive their election information from their Human Resources office; they have 75 days to submit their election to their employer.

What this means for you as a Reporting Unit

It means changes in reporting immediately for new hires, in addition to changes that will be effective with the first full pay period after December 1, 2012. The legislation also changes employer contribution rates. It’s important that you stay updated on the changes and reporting requirements that will be necessary to comply with the new legislation. To help, ORS will be sending a series of reform alert emails, hosting webinars, and updating the RIM.

 

Learn more about how the reform affects your reporting unit by signing up for one of our webinars. Register now.

 

A 2012 Retirement Reform webpage is available at www.michigan.gov/psru where you will find the following:

 

Employer Overview

  • Legislative Summary
  •  How you can help your employees (Access miAccount Program)
  •  New Hire election information

Reporting Updates

  • New Hire Elections and Reporting Process
  • Employer Contribution Rates
  • Reporting Webinars
  • Reporting Instruction Manual Updates

Employer Communications

  • View all recent correspondence to employers about the 2012 Retirement Reform.

Member Education & Information

  • Reform Tools and Information
  • Your Election in Three Steps (Poster)
  • Your Election in Three Steps (Flyer)
  • New Hire Overview and Election Form

Member Communications

  • View all recent correspondence to members about the 2012 Retirement Reform.

What this means for your employees

ORS is sending personalized letters to eligible members advising them to go to www.michigan.gov/orsmiAccount, where they’ll have access to the resources they’ll need to learn about the changes and make their elections. miAccount provides personalized estimates for members* making a pension election, and all members will find a legislative summary, frequently asked questions (FAQs), and calculators to help them evaluate their options.

  • Webinars and Seminars for Members
  • Legislative Summary
  • Frequently Asked Questions for Members

*The information in miAccount will not be applicable to the election for new hires; information regarding their election can be found on the Employer web site.

Our shared goal is to make sure that every Michigan public school employee makes the retiree healthcare and pension election that best meets their future financial and healthcare needs.